SERVICE TAX ON CALL CENTER, Service Tax

[AMIT JAIN, Advocate]

Dear sir, please guide me regarding service tax on call center. my client is running a call center and receive payment from out side india. in this case what is the procedure to charge service tax .

AMIT JAIN, Adv.

Posts / Replies

[MANDAVILLI RAMAKRISHNA]

as the call centre is giving service regarding the data, customers and systems situated at

outside India and the income also thru forex from abroad, no doubt it is export of service.

hence no tax is leviable.

the acid test is:

where the service recipient is based

how the service is provided

how the fee received

where the server of the data is located

where the call centre is situated in India either in SEZ or outside

 

if the central data server is located at abroad and the client is situated at abroad and the payment received form abroad, no doubt this is export of service.

even though the central data server is in India, the client is situated at abroad, the service can be said to have been exported.

please note this criteria is not applicable to 100 percent EOU situated in India.

please note if the call centre is providing service to abroad customers and having contract with

the customers's office situated in India and receiving payment in India then the issue is debatable.

Hope I am clear.